Jovo Energy(SH:605090) Huachuang Securities·2024-08-14 23:38Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 36.45 CNY, compared to the current price of 28.70 CNY [1]. Core Views - The company's core business shows stable incremental contributions, and asset optimization enhances profit margins. The second quarter of 2024 saw revenues of 49.34 billion CNY, a year-on-year increase of 7.89% but a quarter-on-quarter decrease of 22.08%. The net profit attributable to shareholders reached 6.26 billion CNY, marking a significant year-on-year increase of 139.89% and a quarter-on-quarter increase of 30.33% [1]. - The company plans to distribute a mid-term cash dividend of 0.4 CNY per share, totaling approximately 2.49 billion CNY, which represents 33.14% of the fixed cash dividend amount for 2024 [1]. Financial Performance Summary - For the first half of 2024, the company reported a net profit of 6.26 billion CNY, with a significant year-on-year growth of 139.89%. The adjusted net profit was 3.26 billion CNY, showing a slight year-on-year increase of 0.51% [1]. - The company’s total revenue for 2024 is projected to be 28.637 billion CNY, with a year-on-year growth rate of 7.8%. The net profit for 2024 is expected to be 1.537 billion CNY, reflecting a growth rate of 17.7% [3][4]. Business Segment Analysis - In the clean energy sector, the company has effectively allocated resources, maintaining stable pricing power and achieving steady sales growth. The LNG segment has a controlled production capacity of 700,000 tons, with over 330,000 tons produced in the first half of the year. Sales to industrial end-users increased by 20% year-on-year [1]. - The LPG segment is expanding its market presence in domestic chemical raw materials and Southeast Asia, with ongoing construction of a 50,000-ton LPG terminal project expected to be completed by 2025 [1]. - The special gases segment has seen rapid profit growth, with sales of high-purity helium and hydrogen reaching approximately 150,000 cubic meters and 5.434 million cubic meters, respectively [1]. Future Outlook - The company forecasts net profits for 2024, 2025, and 2026 to be 1.537 billion CNY, 1.776 billion CNY, and 2.006 billion CNY, respectively, with corresponding EPS of 2.43 CNY, 2.81 CNY, and 3.17 CNY. The current market capitalization corresponds to PE ratios of 12x, 10x, and 9x for the respective years [1][3].